PowerPoint Presentation by Charlie Cook The University of West Alabama Chapter 6 5e Part III: Organizing Copyright © 2011 Cengage Learning. All rights reserved. Managing Change: Innovation and Diversity

Copyright © 2011 Cengage Learning. All rights reserved.6–2 Learning Outcomes 1. 1.Identify the sources of forces for change List the four types of change List the reasons people resist change, and suggest ways of overcoming such resistance State the difference between a fact, a belief, and a value Explain intrapreneurship, and identify its three roles Discuss the relationship among diversity, innovation, and quality Explain the difference between team building and process consultation State the difference in the use of forcefield analysis and survey feedback Define the key terms listed at the end of the chapter. After studying this chapter, you should be able to:

Copyright © 2011 Cengage Learning. All rights reserved.6–3 IDEAS ON MANAGEMENT IDEAS ON MANAGEMENT at Xerox 1. 1.What types of change did Ursula Burns make as she worked her way up the corporate ladder at Xerox? 2. 2.How is Xerox committed to innovation? 3. 3.How does Xerox embrace diversity? 4. 4.How does Xerox use organizational development (OD)?

Copyright © 2011 Cengage Learning. All rights reserved.6–4 Forces for Change The EnvironmentThe Environment  Changes in the business environment create the necessity for change in a firm’s strategy which requires altering the functions and structure of the firm (technology and people) to support the strategy.  Management axiom: structure follows strategy The Management Functions and ChangeThe Management Functions and Change  A competitive firm creates an organizational structure that supports its strategy which, in turn, is constantly revised to respond to environmental change.

Copyright © 2011 Cengage Learning. All rights reserved.6–5 Exhibit 6–1 ●Types of Organizational Change

Copyright © 2011 Cengage Learning. All rights reserved.6–6

Copyright © 2011 Cengage Learning. All rights reserved.6–7 Forms of Change Incremental ChangeIncremental Change  Continual improvement that takes place within already accepted frameworks, value systems, or organizational structure that is necessary for survival and success. Radical ChangeRadical Change  Rapid change in strategy, structure, technology, or people.  Radical change alters accepted frameworks, value systems, or organizational structure.

Copyright © 2011 Cengage Learning. All rights reserved.6–8 Join the Discussion Ethics & Social Responsibility 1.How do you feel about high school students missing the experience of attending traditional classes and socializing with their peers? 2.Is it ethical and socially responsible to offer an online high school for students? 3.How do you feel about students paying to earn a high school diploma when they can earn one for free at a public school?

Copyright © 2011 Cengage Learning. All rights reserved.6–9 Exhibit 6–2 ●Stages in the Change Process

Copyright © 2011 Cengage Learning. All rights reserved.6–10 Exhibit 6–3 ●Resistance to Change and Ways to Overcome Resistance

Copyright © 2011 Cengage Learning. All rights reserved.6–11 Resistance to Change IntensityIntensity  People vary in their attitudes towards change. Sources of Resistance to ChangeSources of Resistance to Change  Facts  Provable statements that identify reality.  Beliefs  Subjective opinions that cannot be proven.  Values  What people believe are important and worth pursuing or doing.

Resistance to Change (cont’d) Focuses of Resistance to ChangeFocuses of Resistance to Change  Self  The reaction of individuals who feel their self-interests are threatened by change.  Others  The consideration given to how others will be affected by change.  Work Environment  Change in the working environment threatens individuals control of the environment. Copyright © 2011 Cengage Learning. All rights reserved.6–12

Copyright © 2011 Cengage Learning. All rights reserved.6–13 Exhibit 6–4 ●Resistance Matrix

Copyright © 2011 Cengage Learning. All rights reserved.6–14 Innovation Innovative Organizational StructuresInnovative Organizational Structures  Flat organizations with limited bureaucracy  Generalist division of labor  Coordinate with cross functional teams  Informal with decentralized authority  Create separate systems for innovative groups  Attract and retain creative employees  Reward innovation and creativity

Copyright © 2011 Cengage Learning. All rights reserved.6–15 Innovation (cont’d) Innovative Organizational CulturesInnovative Organizational Cultures  Encourage risk-taking  Foster intrapreneurship  Have open systems  Focus on ends rather than means  Accept ambiguous and impractical ideas  Tolerate conflict

Copyright © 2011 Cengage Learning. All rights reserved.6–16

Copyright © 2011 Cengage Learning. All rights reserved.6–17 Diversity DiversityDiversity  The degree of differences among members of a group or an organization.  Race/ethnicity, religion, gender, age, ability  Diversity in all forms is increasing in the general population and the workforce.  Incorporating diversity opens up a larger labor pool of skilled workers from which to recruit.  Diversity is a legal requirement, an ethical obligation, and a competitive advantage.

Copyright © 2011 Cengage Learning. All rights reserved.6–18 Diversity (cont’d) Valuing DiversityValuing Diversity  Emphasizes training employees of different races and ethnicities, religions, genders, ages, and abilities to function together effectively. Managing DiversityManaging Diversity  Emphasizes fully utilizing human resources through organizational actions that meet all employees’ needs.

Copyright © 2011 Cengage Learning. All rights reserved.6–19 Exhibit 6–5 ●Managing Diversity

Copyright © 2011 Cengage Learning. All rights reserved.6–20 Join the Discussion Ethics & Social Responsibility Speaking EnglishSpeaking English 1. Why are some organizations no longer requiring workers to speak English? 2. Should a worker be required to be able to speak English to get a job in the United States? 3. Is it ethical and socially responsible to hire people who can’t speak English and to provide translators and policies written in multiple languages?

Copyright © 2011 Cengage Learning. All rights reserved.6–21 Gender Diversity Issues:Issues:  Disappearance of the “traditional family”  Increase in women as a percentage of the work force  Women’s pay continuing to lag behind men’s  Glass ceiling barring women from upper management  Sexual harassment in the workplace

Copyright © 2011 Cengage Learning. All rights reserved.6–22

Copyright © 2011 Cengage Learning. All rights reserved.6–23 Organizational Development Organizational Development (OD)Organizational Development (OD)  The ongoing planned process of change used as a means of improving performance through interventions. OD InterventionsOD Interventions  Specific actions taken to implement specific changes. Change AgentChange Agent  The person selected by human resources management to be responsible for the OD program.

Copyright © 2011 Cengage Learning. All rights reserved.6–24 Exhibit 6–6 ●Change Models

Copyright © 2011 Cengage Learning. All rights reserved.6–25 Exhibit 6–7 ●OD Interventions and Their Focus

Copyright © 2011 Cengage Learning. All rights reserved.6–26 OD Interventions Team BuildingTeam Building  Designed to help work groups increase structural and team dynamics performance to get the job done. Process ConsultationProcess Consultation  Designed to improve team dynamics by focusing on how people interact as they get the job done. Stages in Team BuildingStages in Team Building 1. Climate building and goals 2. Evaluation of structure and team dynamics 3. Problem identification 4. Problem solving 5. Training 6. Closure

Copyright © 2011 Cengage Learning. All rights reserved.6–27 OD Interventions (cont’d) Forcefield AnalysisForcefield Analysis  Diagrams the current level of performance, the forces hindering change, and the driving force toward change. Survey FeedbackSurvey Feedback  Use of a questionnaire to gather data to use as the basis for change. Large-Group InterventionLarge-Group Intervention  Brings together participants from all parts of the organization, and key outside stakeholders, to solve problems or take advantage of opportunities.

Copyright © 2011 Cengage Learning. All rights reserved.6–28 Exhibit 6–8 ●Forcefield Analysis

Copyright © 2011 Cengage Learning. All rights reserved.6–29 Steps in the Survey Feedback Process 1.Management and the change agent do some preliminary planning to develop an appropriate survey questionnaire. 2.The questionnaire is administered to all members of the organization/unit. 3.The survey data are analyzed to uncover problem areas for improvement. 4.The change agent reports the results to management. 5.Managers evaluate the feedback and discuss the results with their subordinates. 6.Corrective intervention action plans are developed and implemented.

Copyright © 2011 Cengage Learning. All rights reserved.6–30 Steps in the GE Work Out Process 1.Select a work process or problem for improvement. 2.Select an appropriate cross-functional team with outside stakeholder members. The team includes top leaders and a human resources specialist to run the meetings. Outside consultants with relevant expertise may also be included. 3.Appoint a “champion” to follow through on recommendations. 4.Meet for several days to come up with recommendations for improvements. 5.Meet with leaders to get their immediate response to the recommendations. 6.Hold follow-up meetings, as needed, to implement the recommendations.

Copyright © 2011 Cengage Learning. All rights reserved.6–31 OD Interventions (cont’d) Work DesignWork Design  Can be designed as an individual job, as a job for a group to perform, or by departmentalization.  Job enrichment is used to change jobs to make them more interesting and challenging. Direct FeedbackDirect Feedback  In certain situations, the most efficient intervention is to have a change agent make a direct recommendation about a specific change.  Change agent is often an outside consultant.

Copyright © 2011 Cengage Learning. All rights reserved.6–32

Copyright © 2011 Cengage Learning. All rights reserved.6–33 KEY TERMS forcefield analysisforcefield analysis information systems (IS)information systems (IS) large-group interventionlarge-group intervention OD interventionsOD interventions organizational development (OD)organizational development (OD) process consultationprocess consultation stages of the change processstages of the change process survey feedbacksurvey feedback team buildingteam building types of changetypes of change